This study sets to assess the effect of government intervention on economic development adopting Songhai Development Initiative Farm in Rivers State of Nigeria as a case study. It adopted the survey design with the instruments of personal observations, interviews and questionnaires to collect the required data. The data has internal consistency of 0.87, test-retest reliability of 0.85 (p < 0.001), split-half reliability of 0.82 (p < 0.001). The mean of 3 points was chosen as a cut off point for accepting or rejecting each of the items in the Likert’s scale. The Chi-square was also used to test the hypothesis. All items have mean (X ̅) that are higher than the cut-off mark and this is supported by low standard deviation for all the items which depicts a low variation of the observations from the mean. With the calculated Chi-square greater than the table value (i.e 30.34957 > 21.026) in absolute term, the study concludes that there is a significant relationship between Songhai Development Initiative Farm and the economic development. It, therefore, recommended that such and similar government direct involvements in the agricultural and other sectors should be encouraged for optimum benefits in output, job creation, income, social welfare and technological advancement.
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Government Intervention and Economic Development: Lessons from Songhai Development Initiative Farm in Rivers State, Nigeria
1. International Journal of Economics and Financial Research
ISSN(e): 2411-9407, ISSN(p): 2413-8533
Vol. 4, Issue. 1, pp: 13-21, 2018
URL: http://arpgweb.com/?ic=journal&journal=5&info=aims
Academic Research Publishing
Group
*Corresponding Author
13
Original Research Open Access
Government Intervention and Economic Development: Lessons from Songhai
Development Initiative Farm in Rivers State, Nigeria
Agbarakwe, Ugochukwu Henry
Department of Economics, University of Port Harcourt, Nigeria
Anowor, Oluchukwu F*
Department of Economics, Godfrey Okoye University, Enugu, Nigeria
Abstract
This study sets to assess the effect of government intervention on economic development adopting Songhai
Development Initiative Farm in Rivers State of Nigeria as a case study. It adopted the survey design with the
instruments of personal observations, interviews and questionnaires to collect the required data. The data has internal
consistency of 0.87, test-retest reliability of 0.85 (p < 0.001), split-half reliability of 0.82 (p < 0.001). The mean of 3
points was chosen as a cut off point for accepting or rejecting each of the items in the Likert’s scale. The Chi-square
was also used to test the h pothesis. ll items have mean that are higher than the cut-off mark and this is
supported by low standard deviation for all the items which depicts a low variation of the observations from the
mean. With the calculated Chi-square greater than the table value (i.e 30.34957 > 21.026) in absolute term, the study
concludes that there is a significant relationship between Songhai Development Initiative Farm and the economic
development. It, therefore, recommended that such and similar government direct involvements in the agricultural
and other sectors should be encouraged for optimum benefits in output, job creation, income, social welfare and
technological advancement.
Keywords: Government intervention; Economic development; Classical apologists; Keynesians; Songhai development
initiative; Farming.
CC BY: Creative Commons Attribution License 4.0
1. Introduction
Market failure which is predominant especially in the Less Developed Countries (LDCs) and in the developing
and presently the emerging economies has given credence to the rethink of the propositions of the classical
apologists on their assumption of Laissez-faire economy. The role of the public sector expanded with the advent of
Keynesians and Welfare economists especially in the areas of regulations, infrastructural provision and public
entrepreneurships.
The classical apologists insist that the economy should be left alone in the hands of the invisible market forces
and that the efficient quantities of all the desired goods and services of the society will be produced and distributed
guided by the invisible hands at the long-run. They proposed the idea that government should not intervene as its
intervention distorts the effective and efficient workings of the market mechanism. Apparently, the governments of
most third world economies seemed to have had swallowed this classical pill: folded their arms and expected the
market to provide all their needs – but were disappointed. One of such economies is Nigeria where by allowing the
market forces to manage its economy, more resources were allocate to the oil sector which is more foreign driven
and ended up producing a mono-cultural economy. Successive government have waited for the long-run effect which
was expected to be a diversified economy with technological advancement, only to have an economy that serves the
interest of the advanced economies. Consequently, Nigeria turned to an import-dependent economy such that she
buys almost all her needs from other countries including petroleum and agricultural products that she was noted for.
Should the government still stand aside and watch the market forces? Keynes answer to this is no (Akpakpan, 1998).
In the view of Akpakpan (1998), the government should intervene because in the long-run we will all be dead and
will not know whether the market mechanism was able to diversify the economy or not.
Before the political independence of the 1960, the agricultural sector was the dominant sector of the Nigeria
economy. However, in spite of the neglect of the sector occasioned by the discovery of crude oil, it still constitutes a
ver important sector of the nation’s econom . bout 70% of the Nigerian population depends on the sector for their
means of livelihood. It has also struggled to perform the above functions over the years in spite of declining
effectiveness of policy attention since the 1980s (Anowor et al., 2013a). Also rates of poverty reduction have
historically been very closely related to agricultural performance – particularly to the rate of growth of agricultural
productivity (Anowor et al., 2013b). The sector also provides raw materials for the manufacturing sector and
contributes to the foreign exchange earnings of the economy (Odoemenem and Inakwu, 2011).
This neglect of the agricultural sector, according to Adeokun (2005) as cited in (Anowor et al., 2013a), turned a
threat to national food security leading to massive and continuous food importation with an erosion of value addition
gains of the sector as agricultural raw commodities were exported only for finished goods to be imported. It is due to
the importance of the sector that several efforts have been made by past administrations to develop it. Such effort
2. International Journal of Economics and Financial Research
14
include the establishment of Operation Feed the Nation (OFN), Green Revolution (GR), River Basin Authorities
(RBA), Nigeria Agricultural Land Development Authorities (NALDA) etc. (Anyanwu, 1997). It is estimated that
about 20 to 40 percent of the yearly harvest is lost during processing. The primary cause is the lack of storage
facilities, harvesting and processing techniques.
In Rivers State of Nigeria, the government intervened in the agricultural sector to establish a farm to ensure a
more efficient supply of a number of agricultural products and provide leadership in agro processing and technology.
The Songhai Development Initiative Farm was established at Tai Local Government Area of the State and has been
operated for about seven years. The establishment of Songhai Development Initiative Farm was established to
contribute to the development of the State through, among others, minimize the unemployment problems, increase
food production, provide leadership in agro-technological advancement and create income both for individuals and
the government.
However, there is the fear that this project is tending towards abandonment like other previous programmes.
What was the reason for abandonment of this far? Is it that it was not contributing to the development of the state?
There is need to ascertain the effect of the farm on the development of the State. Unfortunately studies as this are yet
to be carried out. This paper therefore wants to bridge this knowledge gap.
This research therefore aims at evaluating the effect of Songhai Development Initiative Farm on job creation;
examining the effect of Songhai Development Initiative Farm on Social Welfare; assessing the effect of Songhai
Development Initiative Farm on Technological Advancement; ascertaining if Songhai Development Initiative Farm
has increase farm output in Rivers State; and investigating if the presence of the farm has led to increase in both
individual income and government internal revenue generation. In summary the study examines the development
effects of the government’s intervention in Rivers state with particular reference to Songhai Development Initiative
Farm and draw lessons there from.
2. Review of Literature
Early development theories viewed agriculture as an important source of resources to support the development
of the industrial sector. The agricultural production growth serves as an engine of growth for the overall economy.
Theorists such as Sir Arthur Lewis in the 1950’s viewed economic development as a growth process of reallocating
factors of production, especially labour from an agricultural sector, characterized by low productivity and use of
traditional technology to a modern industrial sector with higher productivity (Lewis, 1954). Although passive,
agricultural development was seen as necessary for successful economic transformation to ensure the supply of food
and to utilize land as an additional “free” source of growth that would not compete with resources for industrial
growth.
The Solow-Swan Neoclassical growth model and its extension are popularly adopted framework for analyzing
economic growth process and development. Assuming a constant return to scale, aggregate production function is
expressed as
Yt =Kt Lt Bt ……………………………………………………………(1)
Where
Y,K, L and B represent real GDP per capital, real gross capital, labour and hicks-neutral productivity term,
respectively.
The contribution of agriculture to aggregate economic growth could be modeled via its effect on the total factor
productivity or as an intermediate input in the industrial production sector (Ruttan, 1998; Timmer, 2007).
Hwa (1988) argued that agriculture is an engine of growth and added agriculture to the standard Solow-Swan
growth equation as a major linkage between the rural and industrial sector of the economy. Similarly, we also
include additional determinants of growth (agriculture, exports and inflation rate) that have been found to be robust
in explaining aggregate productivity growth (Hwa, 1988); (Barro and Jong-Wha, 1994).
Thus, B in equation 1 is assumed to be a function of agriculture (A), exports (x) and inflation (F), a proxy for
other macroeconomic factors
:. B = f (At, Xt, Ft) = AXF …………………………………………………………… (2)
Substituting the above equation into equation 1, will yield the following:
Yt = Kα
t Lβ
t Aδ
t XФ
t Fv
t ………………………………………………………………. (3)
The Contemporary growth theory views unemployment, poverty and income inequality as related phenomena
(Todaro and Smith, 2009). Employment is seen both as a means of creating income and as a vehicle for income
distribution. The magnitude of unemplo ment and under emplo ment in man LDC’s is enormous (Todaro and
Smith, 2009). Nowhere does this problem feature more prominently than in the agricultural sector. However it has
been observed equally that the basic problem facing agriculture in developing countries is acute shortage of high
level man power and scarcity of highly trained management personnel in agricultural production which has militated
against rapid expansion of agricultural output and hence growth in industrial production and employment in Nigeria.
A realistic assessment of the structure and size of the labour force and prospects for non-agricultural
employment expansion suggest that agricultural development should not only increase output but also increase
labour absorption if the available labour has the needed technical know-how.
Prior to the growth of modern development thinking, economic development has often been strongly associated
with industrialization. This warranted the perception of agriculture, not as a primary stimulant of development, but a
subsidiary of the industrial sector, which in the words of Todaro and Smith (2009) was thought to be the dynamic
and “leading sector” in an overall strateg of economic development. Modeling economic development along the
above lines was successful in creating severe distortions in many backward regions of the world. Economic
3. International Journal of Economics and Financial Research
15
development models based solely on industrialization rather than solving the problem of hunger, unemployment and
human deprivation created issues of rural-urban drift and its attendant sordid implications.
The neglect of agriculture in the attempt to achieve industrialization, not only failed in delivering economic
development, but also deepened underdevelopment. Evolution of modern development thinking brought agriculture
back to the fore of development strategies (Todaro and Smith, 2009). One major unaddressed problem is that the
government of third world countries still feels agricultural production and its development should be carried out by
the underdeveloped private sector that do not have the necessary capital and technology.
2.1. The Rationale for Government Intervention
Agiobenebo (1998) rationalized government intervention in an economy with several reasons which include the
existence of market failure by incentives and signal. Where price does not exist or the price is too low or uncertain,
the signal is zero or low profit and therefore there is no incentive for the private sector to invest hence the market
mechanism will fail in allocating resources to that sector. Another major rationale for government intervention is
technological advancement. Time is a scarce and non-renewable resource. An investor may not be willing to spend
his time and money investing in a research that will consume so much time, energy and money when there are
alternatives abroad. It takes the government’s leadership to drive the technological advancement of an econom . The
works of Okowa (1991) and Ohale and Agbarakwe (2009) corroborate this position.
The summary of the all the related theories and literature on this area of study is that agricultural development is
essential for meaningful industrialization, poverty reduction, economic growth, reduction in unemployment and
underemployment, self-reliance and economic independence. This realization made development of agriculture a top
priority objective for any responsible government that is genuinely interested in driving its economy out of
underdevelopment.
Following the prescriptions of the classical economists this very important objective should be achieved by the
private sector. The government should only come up with the necessary policies and incentive mechanisms to
encourage investors to invest in the sector. The Nigerian government has always adopted these prescriptions but
unfortunately the private sector has been so weak and slow and hence the market has always failed in achieving
agricultural development. It is the incessant failures of the market in this sector that informed government
intervention in Rivers State in 2007 in establishing the Songhai Rivers Initiative Farm.
2.2. Songhai Rivers Initiative Farm
Songhai derives its name from one of the largest and wealthiest empires of West Africa, which flourished during
the early l6th to late 16th century. The Songhai Empire had its capital at Gao around the bend of the Niger River in
present day Niger and Burkina Faso. It was noted for its learning, economic prosperity, agriculture, trade, military
might and great political leadership, which created separate departments for agriculture, the army and treasury
(Rivers State Sustainable Development Agency, 2011). The programme came about when the State government
visited the Songhai Centre in Porto Novo in 2007. Impressed with what she saw as a good model in developing
agriculture in Africa, the state government decided to replicate it in Rivers State.
The Songhai Rivers Initiative Farm (SRIF) was developed to be the hub of agricultural development in the
State. It is a partnership between the Rivers State Government and the Songhai International Centre in Benin
Republic. Songhai Rivers Initiative Farm sits on 314 hectares of land and is about 20 times the size of the Songhai
farm in Porto Novo. The farm was to provide the opportunity to train young Rivers State men and women in new
farming methods. That way, low productivity which is associated with traditional agricultural methods is replaced
with modern innovative and adaptable technologies in agriculture that would attract and keep young men and women
in agriculture.
Work began at the farm in 2010. Before then a group of 110 young Rivers men and women from 23 Local
Government Areas (LGAs) had been sent to Songhai International Centre to receive an 18 months training in various
specialized agricultural and agro based areas. They also imbibed an entrepreneurial culture. Fifty of them have
already been deployed into the farm to form part of the first corps of workers. They were to be given opportunity to
drive their own farm units and sharpen their entrepreneurial skills, and eventually progress to start their own
businesses in their communities with the support of the center (Rivers State Sustainable Development Agency,
2011).
Songhai Centre, Porto Novo, Republic of Benin was set up 31 years ago as a centre for training, agricultural
production, research and development of sustainable agricultural practices. This model has developed new
approaches and farming systems that rely heavily on the combined inputs from local experiences, indigenous
knowledge base on one hand and business communities and research institutions on the other hand. The result is a
robust, zero-waste, integrated agro-allied model promoting rural growth through training, technology adaptation and
strong business and commercialization strategy.
One of the strategic beliefs in the Songhai model, according to the founder, Godfrey Nzamujo in 1985, is that
sustainable agriculture could become a “weapon of mass construction”. That is wh Songhai and its partners have
been committing themselves to a high level of investment in human and material development.
The Songhai human capacity building model is quite a unique one. Songhai is an incubation centre. This
innovative institution has four components. It is a technology park where new ideas and techniques are developed
and contextualized. The model is also an industrial park/production centre where the techniques and ideas are turned
into enterprises and many different types of production activities. The teachers are entrepreneurs. Songhai is as well
a service centre. The game is not over after the initial formation period. Services like marketing, input procurement,
4. International Journal of Economics and Financial Research
16
networking, financial/loan and advisory services are provided to enable the young entrepreneurs to stand on their
own.
3. Materials and Method
The survey design was used for the study to gather the required primary data from Songhai Development
Initiative Farm in Tai Local Government Area (LGA). Data collected include data on the effect of Songhai
Development Initiative Farm on job creation, the effect of the Farm on food production and effect of the farm on
both individual and state. The data were sourced directly from purposefully selected respondents which include the
staff, contractors, agents, agro-marketers, members of host community and any others who has some sorts of
business to do with Songhai Development Initiative Farm. We believed the required information through the
administration of questionnaire, interviewed and observations were gotten.
Four hundred (400) questionnaires were distributed out of which 389 were correctly filled and retrieved
constituting about 97 percent response rate. The instruments that were employed in collecting the data are
observations, interview and the questionnaire which was validated through peer review. Its Cronbach coefficient of
internal consistency is 0.87, test-retest reliability is 0.85 (p < 0.001), split-half reliability is 0.82 (p < 0.001). This
study used SPSS: 22.0 software package for its statistical analysis.
Psychometric scales were used by the respondents to present their views:
SA - Strongly Agree
A - Agree
U - Undecided
D - Disagree
SD - Strongly Disagree
Their responses were rank thus in the table 1 below:
Table-1.
SA A U D SD
5 4 3 2 1
Source: Researchers’ field report, 2017
The data were presented using the Likert’s 5 scale format and anal zed using the mean and standard deviation.
The mean of 3 points was used as cut off point for accepting or rejecting each of the items in the Likert’s scale or
table. That is any item that has a mean of 3 points and above is accepted while any item with mean of less than 3
points is rejected. The Chi-square was also used to test the hypothesis.
∑
( )
Where: F0= observed events from respondents
Fe= expected event
= chi-square
The calculated chi-squared are compared with the critical or table value of chi-square at a 5% (0.05) level of
significance.
4. Results and Discussions
We presented and analyzed the primary data obtained from the field through the use of questionnaire. We first
presented the response rate followed by the data from the questionnaire. This is followed by the testing of the
hypothesis, the discussions of findings, conclusion and recommendations.
5. Data Presentation
The questionnaires which were correctly filled and retrieved were 389, constituting about 97 percent response
rate. See table 2 below:
Table-2. Response to Questionnaire by the 389 respondent
S/N Effect Question SA
5
A
4
U
3
D
2
SD
1
Total ̅ S.
Deviation
1 The Effect
of Farm
on Output
of Rivers
State
Farm Output Greatly
Increased in terms of quantity
in Tai LGA with the presence
of the Farm
219 170 0 0 0 389 4.56 0.24
The variety of farm output
has also increased
significantly in Tai LGA
214 165 5 2 3 389 4.50 0.23
The quality of farm output
has improved significantly
225 150 0 10 4 389 4.49 0.23
Farmers from other parts of
the State now come to Tai for
204 165 0 11 9 389 4.39 0.23
5. International Journal of Economics and Financial Research
17
improved varieties of farm
inputs
2 The of
Farm on
Technologi
cal
Advancem
ent of the
State
You have gained a lot of
experience through the
training and working on this
Farm
360 29 0 0 0 389 4.93 0.27
Those Trained by the SDIF
can now train others and
manage agricultural
production successfully
374 15 0 0 0 389 4.96 0.27
The Processed Products
Especially the fruit juices
from the Songhai
Development Initiative Farm
are comparable to imported
ones
256 120 3 7 3 389 4.59 0.24
The Songhai Development
Initiative Farm has Achieved
the Objective of Developing
a Resilient Integrated
Programme that Links
Agriculture with Industry
189 130 5 40 25 389 4.07 0.20
Songhai Development
Initiative Farm has
Developed the Technology of
Fruit Juice Production,
Cassava Processing, Palm Oil
Processing, Garri Processing,
etc
360 25 4 0 0 389 4.92 0.27
3 The of
Farm on
Social
Welfare in
the State
Improvement in income as a
result of the presence of the
Farm has positively affected
the lives of the Tai
communities by improving
their capacity to consume
206 159 2 17 5 389 4.39 0.23
More commodities are now
available and affordable at
cheaper prices in Tai LGA
267 104 10 3 5 389 4.54 0.24
4 Effect on
Income of
the State
The Songhai Development
Initiative Farm has
Contributed Greatly to the
Internal Revenue Generation
of Rivers State
179 135 1 40 34 389 3.99 0.19
The Songhai Development
Initiative Farm has
Contributed Greatly to the
income of workers
349 35 0 3 2 389 4.87 0.27
Tai generated extra income
through house rentage
235 125 1 13 15 389 4.42 0.23
People engaged in other
commercial activities which
the farm encouraged enjoyed
increased income
261 121 1 2 4 389 4.64 0.24
5 Effect of
the Farm
on Job
Creation
The presence of The Songhai
Development Initiative Farm
created job opportunities for
Rivers people
338 51 0 0 0 389 4.87 0.27
The Songhai Development
Initiative Farm has
contributed greatly to Tai
commercial activities
249 126 1 13 0 389 4.57 0.24
Source: Researchers’ field report, 2017
6. International Journal of Economics and Financial Research
18
6. Analysis of Data
From the table it can be seen that all the items, apart from 4.1 which has a mean of 3.99, have means that are
above 4.00. In other words all items have means that are higher than the cut off mark of 3 points and are therefore all
accepted. This is supported by low standard deviation for all the items in the table which depicts low variation of the
observations from the mean. This clearly shows that the effect of Songhai Development Initiative Farm in Rivers
State on output, technological advancement, social welfare, and income and job creation is positive.
7. Hypothesis Testing
H0: There is no significant relationship between Songhai Development Initiative Farm and the Development of
Rivers State.
The Table below 3 shows the Observed and Expected Frequencies on the Contribution of Songhai Development
Initiative Farm to the Economic Growth and Development of Rivers State.
Table-3.
S/N Effect Items SA
5
A
4
U
3
D
2
SD
1
Total
1 The Effect of Farm on
Output of Rivers State
1 219 170 0 0 0 389
2 214 165 5 2 3 389
3 225 150 0 10 4 389
4 204 165 0 11 9 389
2 The of Farm on
Technological
Advancement of the State
1 360 29 0 0 0 389
2 374 15 0 0 0 389
3 256 120 3 7 3 389
4 189 130 5 40 25 389
5 360 25 4 0 0 389
3 The of Farm on Social
Welfare in the State
1 206 159 2 17 5 389
2 267 104 10 3 5 389
4 Effect on Income of the
State
1 179 135 1 40 34 389
2 349 35 0 3 2 389
3 235 125 1 13 15 389
4 261 121 1 2 4 389
5 Effect of the Farm on Job
Creation
1 338 51 0 0 0 389
2 249 126 1 13 0 389
Source: Researchers’ field report, 2017
Table-4. Distribution by age group
Age Group SA A D SD Total
20 and below 40 (28.75) 10 (21.25) 0(0) 0(0) 50
21 – 30 100 (86.25) 50 (63.75) 0(0) 0(0) 150
31 – 40 40 (57.5) 60 (42.5) 0(0) 0(0) 100
41 – 50 40 (46) 40 (34) 0(0) 0(0) 80
51 and above 10 (11.5) 10 (8.5) 0(0) 0(0) 20
Total 230 170 0 0 400
Source: Researchers’ computation, 2017
7. International Journal of Economics and Financial Research
19
Table-5. Chi-square computation
fo fe ( ) (
)2 ∑
( )
40 28.75 11.25 126.5625 4.4022
10 21.25 -11.25 126.5625 5.9559
0 0 0 0 0
0 0 0 0 0
100 86.25 13.75 189.0625 2.1920
50 63.75 -13.75 189.0625 2.9657
0 0 0 0 0
0 0 0 0 0
40 57.5 -17.5 306.25 5.3261
60 42.5 17.5 306.25 7.2059
0 0 0 0 0
0 0 0 0 0
40 46 -6 36 0.7826
40 34 6 36 1.05882
0 0 0 0 0
0 0 0 0 0
10 11.5 -1.5 2.25 0.19565
10 8.5 1.5 2.25 0.2647
0 0 0 0 0
0 0 0 0 0
∑
( )
Source: Researchers’ computation, 2017
8. Decision
Since the calculated Chi-square is greater than the table value (i.e 30.34957 > 21.026) in absolute term, we
reject the null hypothesis (H0) and conclude that there is a significant relationship between Songhai Development
Initiative Farm and the economic development.
8.1. Summary of Major Findings
Based on the mean scores and standard deviations of the items on, the following major findings were made:
1. Farm output greatly increased in terms of quantity with the presence of the Songhai Development Initiative
Farm in Rivers State.
2. The variety of farm output has also increased significantly in Rivers State.
3. Also the quality of farm outputs has improved significantly in Rivers State.
4. Farmers from other parts of the State now come to Tai LGA for improved varieties of farm inputs
5. The workers have gained a lot of experience through training and working on this Farm
6. Those Trained by the SDIF can now train others and manage agricultural production successfully
7. The processed products, especially the fruit juices from the Songhai Development Initiative Farm, are
comparable to imported ones
8. The Farm has achieved the objective of developing a resilient integrated programme that links agriculture
with industry
9. Farm has developed the technology of fruit juice production, cassava processing, palm oil processing, garri
processing, etc
10. Improvement in income as a result of the presence of the Farm has positively affected the lives of the Tai
communities by improving their capacity to consume
11. More commodities are now available and affordable at cheaper prices in Tai LGA.
12. The Songhai Development Initiative Farm has contributed greatly to the internal revenue generation of
Rivers State
13. The Farm has contributed greatly to the income of workers
14. Tai generated extra income through house-rent as a result of the presence of the farm.
15. People engaged in other commercial activities which the farm encouraged enjoyed increased income
16. The presence of the farm created job opportunities for the unemployed.
17. The Farm has contributed greatly to Tai commercial activities.
The chi-squared analysis shows that there is a significant relationship between Songhai Development Initiative Farm
and the development of Rivers State.
9. Other Findings
During the course of this study, other findings that were made are:
i) The road network in the host communities of the farm has improved
8. International Journal of Economics and Financial Research
20
ii) The skills of the host community farmers in fish farming, poultry, snail farming, pig rearing, juice
processing etc. has greatly improved
iii) The presence of the Farm has greatly reduced the different social vices such as youth restiveness and
theft which characterized the communities. This, the study revealed, is because some of those who
were hitherto involved in these vices are now either gainfully employed by the farm or are engaged in
other commercial activities boosted in the area by the farm.
iv) The community market has improved from once a week to daily market as a result of the presence of
the Farm. The communities also trade on the products of the farm which has enhanced their income.
v) The Songhai Development Initiative Farm presently face the fear of abandonment and the consequent
of this will certainly not going to be sweet.
10. Conclusion
In summary, the study found that Songhai Development Initiative Farm had a significant positive effect on
output, technological advancement, social welfare, and income and job creation. For this reason and the fact that the
chi-square result shows a positive and significant relationship between the farm and the development of the State the
study concludes, that the farm has contributed significantly to the economic development of Rivers State.
10.1. Lessons from Songhai Development Initiative Farm, Rivers State
Two major lessons could be drawn from this study. They include:
i) Government intervention in the agricultural sector is desirable and should be encouraged. This is in
consonance with the postulations of public sector economics as can be found in Agiobenebo (1998) when
talking about the phenomenon of market failure. The government is invited to intervene whenever the
market fails to produce desirable outcome or unable to stop an undesirable outcome. The market has been
producing undesirable outcomes – dependence of the economy on foreign products for the importation of
commodities that can be produced locally with government intervention such as this. We can no longer
afford to wait for the market forces, for we do not know how long the long run will be. Governments should
continue to encourage private sector to drive the economy but should not only intervene but should urgently
do so whenever and wherever the market fails.
ii) The implication is the same for technological advancement. If the intervention in the agricultural sector
could have such a great positive effect on technological advancement within such a short interval, then
government leadership in industrial production and Research and Development (RD) could drive the
economy out of this technological underdevelopment. This again is in line with the argument of Ohale and
Ohale and Agbarakwe (2009) when discussing the rationale for government intervention in development
and planning. Technological advancement is not easy to come by, especially at this point in history where
countries plan and hatch anti-economic development policies to ensure that others do not develop and
maintain market for themselves. We cannot continue to rely on the market forces for technological
advancement. Government deliberate and direct intervention should generate viable option and outcome.
11. Recommendation for Policy
It is therefore recommended that:
i) Governments should continue to support and manage the farm instead of abandoning it. Abandoning
the farm for whatever reason is anti-developmental and therefore most unwelcome.
ii) Such and similar government direct involvements in the agricultural and other sectors of the State
should be encouraged for optimum benefits in output, job creation, income, social welfare and
technological advancement.
iii) Other state governments should emulate this from Rivers State and establish theirs to attract similar
benefits.
iv) The farm couldn’t have been so successful without close government monitoring of expenditure and
activities of the farm. Therefore government continued close monitoring of the farm is also
recommended.
v) Governments of developing nations should stop folding their arms expecting the market forces to
provide everything for them. Therefore they should always intervene to ensure that societal desirable
outcomes are achieved.
References
Adeokun (2005). Trade liberalization dynamics to nigerian agricultural export. Initiatives Publishers: AERC
Special Paper 1 Nairobi.
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